Horizon Minerals has started mining activities at the Boorara Gold Project near Kalgoorlie-Boulder in Western Australia (WA).
The project, which is fully owned by Horizon, has completed Phase 1 of its grade control drilling programme and is set to gradually increase load and haul production through August and September.
The first milling and subsequent gold production are anticipated in October 2024.
Boorara’s development was approved in late July 2024, with plans to mine four open pits containing 1.24 million tonnes of ore at a grade of 1.24 grams per tonne, yielding approximately 49,500oz of gold.
Horizon expects the mining operations to span 14 months, with processing over 19 months at Norton Gold Fields’ Paddington plant, projected to generate $30m in free cash flow at a gold price of A$3,600/oz.
The company has awarded the mining services and surface ore haulage contracts to Hampton Transport Services, with an agreement that no payments to the mining contractor will be made until the first gold pour is sold and funds are received.
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
Hampton has successfully mobilised and established the site, with grade control drilling well under way.
Mining commenced with the first drill and blast pattern fired last week, aiming to build up broken stocks alongside free dig areas in Pit 2, which is part of the larger Regal zone within the Boorara ore system.
Excavation began on a single shift and is expected to transition to double shifts by the end of August.
A second digger shift will start in September 2024, with operations ramping up to four digger shifts by the end of the month.
Horizon managing director and CEO Grant Haywood said: “We are eagerly awaiting mining progressing to expose first ore in September and pouring gold bars in October to give us first revenue from Boorara in this strong gold price environment.
“This is a major milestone for Horizon as we commence our journey to be a long-term sustainable gold producer, delivering significant cash flows into the business to create further value through our significant portfolio of assets.”
